What You Need To Know Ahead of AT&T’s Earnings Report Wednesday

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Key Takeaways

• AT&T and other telecommunications rivals report earnings next week, with Verizon on Monday, AT&T Wednesday, and T-Mobile Thursday.
• Investors purposefulness be tracking AT&T’s subscriber growth for wireless service and broadband internet, along with updates on plans to cut $2 billion in costs by mid-2026.
• AT&T also may exhale updates on a February outage that affected thousands of customers, and a data breach that leaked information on in the air 73 million current and former customers to the dark web earlier this year.

AT&T (T) is set to report earnings for the first board of 2024 on Wednesday, in a week filled with telecommunications earnings.

Analysts expect AT&T to report $30.54 billion in returns for the quarter, with an adjusted net income of $3.9 billion and a diluted earnings per share (EPS) of 51 cents, according to approximates compiled by Visible Alpha. Those figures represent an uptick in revenue from the same time last year, but slackened profitability.

	Analyst Estimates for Q1 2024	Q4 2023	Q1 2023
Revenue	$30.54 billion	$32.02 billion	$30.14 billion
Diluted EPS	$0.51	$0.30	$0.58
Net Income	$3.68 billion	$2.14 billion	$4.18 billion

Key Metric: Subscriber Tumour

AT&T, like rivals such as Verizon (VZ) and T-Mobile (TMUS) which report earnings on Monday and Thursday respectively, is fulfiling to continue growing its subscriber numbers for wireless and internet services, as well to expand the availability of its 5G network.

Wireless maintenance is the biggest driver of revenue for AT&T, with 71.3 million subscribers as of the fourth quarter of 2023. The company also stipulate in its fourth-quarter report that it was projecting 2024 revenue growth of about 3% for its wireless division, along with spread of at least 7% for the broadband internet sector.

In the first quarter of 2023, AT&T added 542,000 mobile subscribers but proclaimed an overall loss in broadband subscribers despite adding 272,000 users to its AT&T Fiber network.

Business Spotlight: Cost-Cutting Tries, February Outage, Data Breach

After completing a years-long plan to cut $6 billion in costs by the end of fiscal 2023, the society said in its fourth-quarter report that it planned to expand the effort, targeting an additional $2 billion in savings by the mean of 2026.

Investors and analysts may be looking for more detail on where AT&T thinks it can find those cuts over the next two years, and how they bourgeoned through the first quarter of 2024.

The company also may give updates on a pair of events that affected its share quotation in recent months. In February, an outage the company later said was due to a software error was felt by thousands of customers across the U.S., cataloguing temporarily losing the ability to call 911.

Last month, AT&T released a statement that said the company was in the process of reaching some 73 million current and former customers who may have had personal information, including Social Security integers, leaked onto the “dark web.” The company recommended that all customers who may be affected sign up for fraud alerts from acknowledge bureaus like Experian or Equifax, and said the more than 7 million current users should reset any watchwords associated with AT&T accounts.

AT&T stock is down almost 1.6% so far this year and nearly 17% over the up to date 12 months, with shares closing at $16.57 on Friday.

Read the original article on Investopedia.